Energy Insider: Baowu Plans $7.7 Billion Carbon Fund; China’s National Carbon Market Debuts With Turnover of 4.1 Million Tons
In today’s Caixin energy news wrap: China’s long-awaited carbon market finishes the first day of trading with a turnover of 4.1 million tons, and China opens coal reserves to ease tight supply as power consumption surges.
Top steelmaker Baowu initiates $7.7 billion carbon neutrality fund
China Baowu Steel Group, the world’s largest steelmaker, plans to set up a “carbon neutral” fund with partners, aiming a total investment of 50 billion yuan ($7.74 billion) in clean energy, green technology, environmental protection and pollution control. The partnership includes China Pacific Insurance (Group) Co. Ltd., CCB Financial Asset Investment Co. Ltd. and National Green Development Fund. The fund, with an initial investment of 10 billion yuan, will be the biggest carbon themed fund in China, Baowu said.
China’s national carbon market debuts with 4.1 million tons of turnover
China’s national carbon trading market completed its first trading day Friday with 4.1 million tons of carbon dioxide quotas worth 210 million yuan ($32.5 million) changing hands, the Shanghai Securities News reported. The first transaction took place at 9:30 a.m., pricing a ton of emissions at 52.78 yuan ($8.16).
China opens coal reserves to ease tight supply
Beijing will release more than 10 million tons of coal from national reserves to expand supplies as the government struggles to balance ensuring enough electricity to the grid with transitioning away from high-carbon emitting fuels, which generate the bulk of the nation’s energy. The coal will be “released onto the market at any time as needed” to stabilize supplies and prices, according to a statement Thursday from the National Development and Reform Commission.
China produces 5% less coal in June
China’s domestic coal production dropped 5% in June from a year ago to 320 million tons, according to the National Bureau of Statistics. At the same time, coal imports rose 12.3% to 28.4 million tons.
China’s crude steel production rises 11.8%
China’s crude steel production during the first six months reached 563 million tons, up 11.8% from a year ago, data from the China Iron and Steel Association showed.
Regulator launches nationwide inspection of chemical energy storage facilities
China’s National Energy Administration Thursday issued a plan to launch safety inspections of power stations’ chemical energy storage projects. The inspections will focus on key equipment quality, design, construction, operation, maintenance and safety management.
Sino Prima Gas to invest $232.1 million in underground natural gas storage
Beijing Warburg Energy Development Co., Ltd., a unit of Sino Prima Gas Technology Co. Ltd. (300483.SZ), will build an underground natural gas storage project in Yonghe County, Shanxi province, in partnership with the local government, Sino Prima said Thursday. The project will be built at a depth of more than 2,500 meters with a designed capacity of 1 billion to 1.5 billion cubic meters. The investment will total 1.5 billion yuan ($232.1 million).
Ningxia vows to develop storage to support new-energy use
The government of northwest China’s Ningxia Hui Autonomous Region pledged to promote energy storage development to promote new-energy expansion. The government set a target to build energy storage capacity equivalent to at least 10% of local new-energy installation capacity by 2025. Over the past five years, the installed capacity of new-energy power generation in Ningxia more than doubled from 11.29 million kilowatts to 25.73 million kilowatts.
China-built solar farm in Singapore starts operation
The Tengeh Reservoir’s 60 megawatt floating solar farm project, the largest of its kind in Singapore, was officially launched this week. The project was built by Shanxi Electric Power Engineering Co. Ltd., a subsidiary of China Energy Engineering Group. The project will meet 7% of power demand of the Public Utilities Board of Singapore and will supply clean energy for several water treatment plants affiliated with the department.
Contact editors Han Wei (email@example.com) and Bob Simison (firstname.lastname@example.org)
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